TCW Funds, an investment management firm, published its first-quarter 2026 investor letter for the ‘TCW Concentrated Large Cap Growth Fund.’ A copy of the letter is available to download here. The first quarter was marked by volatility in equity markets, driven by geopolitical tensions, concerns about the private credit sector, a government shutdown, and ongoing AI concerns. During this period, The Fund (I Share) reported a net loss of 11.75%, lagging behind the Russell 1000 Growth Index return of -9.78%. The Fund considers the market’s broadening as a healthy sign and remains confident that the market will eventually recognize the portfolio’s intrinsic value. Please review the Fund’s top five holdings to gain insights into their key selections for 2026.
In its first-quarter 2026 investor letter, TCW Concentrated Large Cap Growth Fund highlighted ASML Holding N.V. (NASDAQ:ASML) as a notable contributor. ASML Holding N.V. (NASDAQ:ASML) is a Dutch-based semiconductor company that provides lithography solutions. On May 19, 2026, ASML Holding N.V. (NASDAQ:ASML) stock closed at $1,459.44 per share. One-month return of ASML Holding N.V. (NASDAQ:ASML) was 1.09%, and its shares gained 97.98% over the past 52 weeks. ASML Holding N.V. (NASDAQ:ASML) has a market capitalization of $562.49 billion.
TCW Concentrated Large Cap Growth Fund stated the following regarding ASML Holding N.V. (NASDAQ:ASML) in its Q1 2026 investor letter:
“Our strongest performance during the quarter came from the information technology and industrials sectors. Shares of ASML Holding N.V. (NASDAQ:ASML) (ASML; 3.46%**) rallied after the company reported solid 4Q25 results. Revenue of €9.7b (+29% QoQ, +5% YoY) modestly beat consensus estimates of €9.6b as strength in services (upgrades) and foundry offset slower memory shipments. Bookings of €13b meaningfully topped consensus estimates (€7.5b) driven by leading edge EUV (Extreme Ultraviolet) bookings of €7.4b. Management’s CY26 revenue guidance range was wide (+4% to +19%), reflecting the potential timing of deliveries (2026 or 2027), but it is much better than a quarter ago when management said “we do not expect 2026 total net sales to be below 2025.” Investor sentiment has improved meaningfully over the last quarter due to strong capex guidance by TSMC, increasing DRAM pricing, and acknowledgement capacity constraints exist at ASML’s largest customers. In our view, demand remains robust for ASML as the lone provider of leading-edge lithography, critical to future chip production. We remain positive on shares.”
ASML Holding N.V. (NASDAQ:ASML) is not on our list of 40 Most Popular Stocks Among Hedge Funds Heading Into 2026. According to our database, 101 hedge fund portfolios held ASML Holding N.V. (NASDAQ:ASML) at the end of the fourth quarter, up from 82 in the previous quarter. While we acknowledge the risk and potential of ASML Holding N.V. (NASDAQ:ASML) as an investment, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and doing so within a shorter time frame. If you are looking for an AI stock that is more promising than ASML Holding N.V. (NASDAQ:ASML) and that has 10,000% upside potential, check out our report about this cheapest AI stock.
In another article, we covered ASML Holding N.V. (NASDAQ:ASML) and shared Baron Opportunity Fund’s views on the company. In addition, please check out our hedge fund investor letters Q1 2026 page for more investor letters from hedge funds and other leading investors.
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Disclosure: None. This article is originally published at Insider Monkey.
